When a car is stolen what does insurance pay? | AutoInsurance.org
Are you only paying your state’s minimum requirements when you buy auto insurance coverage? If so, you may not be eligible to get a stolen car insurance payment in the event of a theft.
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Read on to learn how your insurance company will handle a stolen car report before it happens so you can purchase the right auto insurance coverage. Understanding the different types of coverage can ensure that you are fairly reimbursed in the event your car is stolen.
Reading: How much does insurance pay if your car is stolen
can you file an insurance claim if your car is stolen?
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You can only file an insurance claim for a stolen car if you have the proper coverage. If you have full coverage, you can file a car insurance claim for theft. Without this coverage, a stolen car has no protection.
It is essential to understand how your vehicle is valued. Due to depreciation, insurance companies do not cover the purchase price of your car. instead, the company will look at the value of your vehicle on the day it was stolen. this is the actual cash value of your vehicle, also known as fair market value.
To process the claim, the insurance company needs a copy of the police report. A representative will also interview him about the last time he saw his vehicle.
if your vehicle is repossessed
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When your vehicle is stolen, there is always a chance to get it back. if this happens before the claim is closed, the insurance company usually treats the matter as a damage claim.
The cost of repairs is determined by the insurance company based on the threshold for your state. If your damages exceed this threshold, your claim will be treated as a total loss.
if your vehicle is not recovered
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If your vehicle is not recovered during the time your claim is open, then your claim is considered a total loss. this means your car’s value is based on comparable sales in your area.
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once your deductible is subtracted from the assessed value, your insurance company will provide you with a check to compensate you for the remainder of your loss.
what kind of insurance covers a stolen car?
All states require motor vehicle operators to carry minimum insurance coverage on their vehicles. Basic coverage requirements, also known as liability, are similar from state to state and typically cover some or all of the following:
- body injuries
- property damage
- uninsured driver
- personal injury protection
These coverages are designed to primarily protect the driver and passengers of any vehicle affected by the insured’s negligence, but the state minimum insurance does not cover theft.
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You need comprehensive coverage for theft. If you only apply for the policy options required in your state, you may not be insured after a collision or if your car is stolen. consider comprehensive and/or collision insurance instead.
Will comprehensive or collision coverage help with a payment?
what is the difference between comprehensive and collision insurance coverage?
Comprehensive coverage pays to repair or replace your car if it’s damaged during a natural disaster, vandalized or stolen. collision insurance will pay if you have an accident with another vehicle or object.
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Comprehensive insurance is more expensive than liability and collision coverage, but it gives you peace of mind in case something unexpected happens to your vehicle.
The more coverage you choose, the higher your rates. Another factor that can increase your rates is the deductible amount you choose. the higher your deductible, the lower your rates.
However, this also means the insurance company will pay less for a claim. for example, if the claim is less than your deductible, then you will not receive any payment. It’s a good idea to choose a deductible you can afford, but not one that leaves you without a vehicle.
will a theft claim increase my auto insurance rates?
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If you are found to be at fault or negligent at the time of the claim, this can cause your insurance rates to increase significantly. however, when your vehicle is stolen through no fault of your own, opening a claim to recover your loss should not affect future insurance rates.
This depends on the insurance company and how many claims you have filed in the past. so shop around with multiple insurers to find one with coverage that’s right for you.
what you need to know to get a stolen car insurance payment
It’s a good idea to discuss each part of your policy with your insurance company before you buy auto insurance, so you know you have the right coverage for all situations, including auto theft.
To safeguard your vehicle, purchase a comprehensive auto insurance policy that covers it in the event of theft. A comprehensive and collision package with reasonable deductibles ensures you’re properly protected in all situations and never go without compensation.